Business Case – Bamboo Charcoal Briquettes

1. Executive Summary ..................................................................................................................................... 3

2. Introducing EmBraVerde ............................................................................................................................. 4

2.1 Producing Bamboo Seedlings .................................................................................................................. 5

2.2 Planting and Growing the Bamboo ......................................................................................................... 6

2.3 Producing Biomass .................................................................................................................................. 7

2.4 Carbonizing CO2 and Producing Oxygen .................................................................................................. 8

2.5 Contact Information .............................................................................................................................. 10

2.6 Company EmBraVerde, Facts & Figures ................................................................................................ 10

3 Production and Delivery of Bamboo Charcoal .......................................................................................... 11

3.1 Charcoal Production Process ................................................................................................................. 12

3.2 Example: Transport to Europe ............................................................................................................... 13

3.3 Best Charcoal ......................................................................................................................................... 13

3.3 Packaging ............................................................................................................................................... 16

3.4 Compensating CO2 Emission .................................................................................................................. 17

4 Bamboo Dendrocalamus ASPER, Facts & Figures ...................................................................................... 18

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Figure 1 Business Case “Bamboo Charcoal Briquettes” ................................................................................ 3

Figure 2 Location of the Fazenda in the state of GOIAS ................................................................................ 5

Figure 3 Producing seedlings and planting bamboo ..................................................................................... 5

Figure 4 Planting Bamboo ............................................................................................................................. 6

Figure 5 Growing Bamboo ............................................................................................................................. 6

Figure 6 Comparison of Energy Values .......................................................................................................... 7

Figure 7 Pellets / Energy Value ...................................................................................................................... 8

Figure 8 Pellets made of Bamboo, Bamboo Char Coal and a Typical Plantation. ......................................... 8

Figure 9 Green House Gas (GHG) Benefit, Example ...................................................................................... 9

Figure 10 Carbon Dioxide Emissions, Examples .............................................................................................. 9

Figure 11 Core Team of EmBraVerde ............................................................................................................ 10

Figure 12 EmBraVerde : Facts & Figures ....................................................................................................... 11

Figure 13 Production Process of Charcoal ..................................................................................................... 12

Figure 14 Source of Bamboo Charcoal .......................................................................................................... 14

Figure 15 Top Quality of Bamboo Charcoal ................................................................................................... 14

Figure 16 Packaging of Bamboo Charcoal ..................................................................................................... 14

Figure 17 Firing of Bamboo Charcoal ............................................................................................................ 15

Figure 18 Shape of Bamboo Charcoal Briquettes .......................................................................................... 15

Figure 19 The Favorite of Bamboo Charcoal Briquettes ............................................................................... 16

Figure 20 Temperature of firing Bamboo Charcoal ....................................................................................... 16

Figure 21 Packaging in Paper Bags (boxes) ................................................................................................... 17

Figure 22 Bamboo Facts & Figures ................................................................................................................ 18

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1. Executive Summary

Company EmBraVerde (Empresa Brasileira Verde) was founded in the year 2011 in the state of Goias in Brazil. We are specialized in the production of Bamboo seedlings, planting and growing giant Bamboo and producing biomass out of Bamboo.

Bamboo plants are a fantastic source for the production of char coal and various kinds of briquettes for the provision of thermal energy, especially for barbeques. We are growing two species at own plantation; Dendrocalamus (D.C. ASPER) and D.C. STRICTUS. This Bamboo plants are growing very fast within eight years for up to 30 meters in height, the diameter of poles reaches fifteen centimeters and more. It shows lifetimes of more than eighty years, while we are harvesting every year approximately 40 tons of biomass per hectare.

The Bamboo is an excellent plant to store carbon dioxide (CO2) of more than 50 tons CO2 per hectare and year, while it produces 30% more oxygen than any other plant on planet. It supports anti-erosion and renaturation of damaged soil.

The Bamboo is truly sustainable, ecological and much more efficient for biomass than any kind of wood.

EmBraVerde provides top-quality charcoal briquettes for the international market, worldwide. Our briquettes are perfect for the firing of barbeques. It shows high value of energy, very long lasting high temperature of the glow, no bad smelling, no smoke and very small amount of ash while it is truly CO2 neutral.

Due to many years of business experiences in Brazil, EmBraVerde is operating the headquarter in Switzerland and the production site in Brazil. Contract handling, payment, etc. is performed through EmBraVerde Switzerland.

We are offering Bamboo charcoal (pellets, briquettes, etc.) packaged in bags, or bulk. Preferred transportation in ISO containers (40 foot) by sea cargo.

The following illustration shows the Business Case for the provision of Bamboo charcoal briquettes.

Figure 1 Business Case “Bamboo Charcoal Briquettes”

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The illustration above shows a typical “deal”, whereas EmBraVerde provides a proposal for the delivery of Bamboo Charcoal Briquettes for the customer. In the next step the contract for delivery will be finalized by customer and EmBraVerde Switzerland. Language for contracting can be English or German.

EmBraVerde Brazil will start providing the delivery of char coal briquette and organize the transport from the Bamboo plantation to the destination, chosen by customer.

EmBraVerde guarantees top quality of the char coal for every single briquet. Planting of Bamboo and production of charcoal is fully licensed by the Brazil Government. International certifications, such as FSC, WWF, ISO, etc. are on the way.

In addition to the advantages in the efficiency of the product and sustainability; EmBraVerde provides labor work at rural areas in Brazil for low qualified workers and in consequence supports health and education for kids and families.

2. Introducing EmBraVerde

The company EmBraVerde ltda. was founded in 2011 in the city of Caldas Novas, state of Goias in Brazil.

The focus of EmBraVerde’s activities is the growing of Bamboo on terrain all over Brazil in order to be used as

a source for the furniture industry and as a source for energy (biomass) in forms of chips, pellets, charcoal,

etc.

EmBraVerde owns a farm (Fazenda) of 30 hectares (300.000 square meters) for the production of seedlings

made of Bamboo. Preferred species are Dendrocalamus (D.C.) ASPER and D.C. STRICTUS.

The main purposes of our activities are the production of green energy (biomass, thermal energy) made of

Bamboo, growing of Bamboo poles for the production of furniture, etc. and producing Bamboo seedlings for

planting in order to capture CO2 (carbon dioxide) emissions in huge quantities.

The synonym EmBraVerde stands for: Empresa Brasileira Verde (Green), it is a limited entity (ltda) registered

in Caldas Novas and owned by Harald Waecken. The fazenda (farm) is located approx. 16 km next to the city

to Caldas Novas.

Please visit www.EmBraVerde.com for detailed information.

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Figure 2 Location of the Fazenda in the state of GOIAS

2.1 Producing Bamboo Seedlings

The first “greenhouse” is in operation. We are producing Bamboo seedlings by “multiplying” existing seedlings

and by “cloning” bamboo culms. More than 25 hectares are already planted with Bamboo in order to

provide unlimited material for the process of “cloning” and “multiplying” inside the nursery.

The nursery is equipped with a fully automated watering-system, a net to absorb direct sun-light and a camera

surveillance system for remote control by Internet.

ASPER “clones” STRICTUS “multiplied” ASPER for transport (sale).

ASPER for transport (sale) Planting 25 hectares ASPER Growing ASPER at the fazenda

Figure 3 Producing seedlings and planting bamboo

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2.2 Planting and Growing the Bamboo

We are planting giant Bamboo in the field (land) at a grid of 8 x 4 meters. The rows are eight meters wide in order to allow machines to drive in for harvesting. The distance of one plant to the next within one row is four meters. This dimension in planting requires approx. 300 seedlings per hectare.

Already after four years of growing the bamboo starts to build its own “roof” for shadow against the sun. After six to eight years the planted field looks like a forest. The Bamboo does not need fertilizer for growing or pesticide for surviving, the bamboo supplies itself with all the necessary.

ASPER plants are ready for the field. ASPER plants in their third year of growing.

Figure 4 Planting Bamboo

ASPER in the year four after planting. ASPER, fully matured. 30 meters high

Figure 5 Growing Bamboo

The left picture shows a typical planting of Bamboo ASPER at a Fazenda in the state of Goias, close to the city of Goiania. The Bamboo was planted in rows of eight meters and distances of four meters to each other. The plants are four years old.

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All energy that the bamboo needs for its extremely fast growing comes from the plant itself. The huge amount of green will be kept at the plantation as a fertilizer for growth.

The right-hand side picture shows me in front of an eight-years-old ASPER in a public park in Goiania. Up to 300 “culms” are growing as a result of one single seedling. A fully matured Bamboo plantation delivers more than 40 tons of biomass per hectare and year, every year. The lifetime of the plants is up to 80 years.

2.3 Producing Biomass

EmBraVerde is focused and specialized in the production of biomass, made of giant Bamboo. The calorific value of burned (fired) Bamboo is similar with the values of hard wood. Please note, the Bamboo provides every year harvest, for many years. Hard – wood needs to grow for thirty years after cutting. Therefore, the use of Bamboo is much more efficient than using wood. In addition, Bamboo is an excellent plant for renaturation.

The following illustration shows a comparison of energy contents, of fuel sources that could be distributed for Refugees.

Figure 6 Comparison of Energy Values

Bamboo charcoal shows a calorific value (energy) of 30 MJ/kg, this equals 8.3 kWth/kg; the best for biomass.

Please note the energy value of fuel (heating oil) shows 10 kWh/kg and we are shipping that form of energy around the world from the producers to the customers.

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The diagram shows the result of analyzes of Bamboo biomass from EmBraVerde performed in Switzerland and the UK in 2013 and 2015. The value for pellets made of Bamboo species ASPER shows a calorific value (CV) of 16.2 MJ/kg. In order to increase the density of energy and to erase smoke and smelling, we produced charcoal made of Bamboo, species ASPER and the CV shows 26.62 MJ/kg, a big step. Nowadays we are already able to increase the energy density to values beyond 30.xx MJ/kg. This value equals 8.33 kWh/kg.

Figure 7 Pellets / Energy Value

The picture on the left shows pellets produced by EmBraVerde straight made of Bamboo “sawdust”.

In the middle, the picture shows pellets made of Bamboo charcoal produced by EmBraVerde and the right-

hand picture shows a typical Bamboo plantation that is continuously harvested over years.

Pellets of Bamboo produced by EmBraVerde

Pellets of char-coal based on Bamboo.

Operation (harvest) of a typical Bamboo plantation.

Figure 8 Pellets made of Bamboo, Bamboo Char Coal and a Typical Plantation.

2.4 Carbonizing Co2 and Producing Oxygen

One hectare of matured Bamboo absorbs Carbon in the range of 30.000 kgCO2/ha and year to 70.000

kgCO2/ha and year, depending on climate conditions, quality of soil, etc.

The following illustration shows the Green House Gas (GHG) Benefit of a Bamboo plantation in Nicaragua,

following the “Gold Standard” for Climate Credits.

An area of 1.235,6 ha is planted with Bamboo. Within the period of twenty (20) years the plants will

carbonize (store) roughly 816.300 tons of CO2 [tCO2 -e] in Long Term Average (LTA).

This calculates to 816.300 tCO2 -e / 1.235 ha / 20 years = 33.05 tCO2 -e per year and hectare.

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Figure 9 Green House Gas (GHG) Benefit, Example

The following illustration shows some typical values for the current emission of CO2.

Figure 10 Carbon Dioxide Emissions, Examples

In general, we are using the world’s resources three times every year, that is two times too often.

140'200.0

1'209'700.0

816'295.2

0.0

200'000.0

400'000.0

600'000.0

800'000.0

1'000'000.0

1'200'000.0

1'400'000.0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Green House Gas (GHG) Benefit

GHG Benefit [tCO2 -e]

Long Term Average (LTA)

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The plant produces 30% more oxygen than any other on this planet.

EmBraVerde is in contact with potential customers, such as airlines, heavy industry, etc. and we are

preparing the necessary documents to receive certification for the trading with emissions (CO2).

2.5 Contact Information

Please do not hesitate to contact us at:

embraverde@embraverde.com or myself at harald@embraverde.com at any time.

Please visit the EmBraVerde homepage at www.EmBraVerde.com

The following photos are taken at the Fazenda, showing the core team of EmBraVerde:

Right: Stephan, Technical Director Left: Cleiton, Technical Assistant

Front: Sebastiao, Caseiro at Fazenda Back: Employee

Harald, CEO and owner of EmBraVerde

Figure 11 Core Team of EmBraVerde

2.6 Company EmBraVerde, Facts & Figures

The following illustration shows the facts & figures of company EmBraVerde and the contact details.

EmBraVerde: Facts & Figures

Established: 2011

Legal Form: limited

Location: Caldas Novas, Goias in Brazil

Business Targets:

Production and selling of Bamboo seedlings, species Dendrocalamus (D.C.) ASPER, GIGANTEUS and STRICTUS. Production and selling of BIOMASS made of Bamboo.

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Types are: a) Chips and Pellets. b) Briquettes made of CharCoal

Competences: • Running a 30 hectares Bamboo nursery for the production of seedlings. • Preparing land and planting Bamboo. • Growing and harvesting Bamboo. • Producing BIOMASS and providing “poles” for industry (furniture, construction,

etc.).

Contact: www.EmBraVerde.com

Harald Waecken, Director and owner of company. harald@embraverde.com Stephan Posch, Technical Director stephan@embraverde.com

Figure 12 EmBraVerde : Facts & Figures

3 Production and Delivery of Bamboo Charcoal

The primarily work of EmBraVerde in Brazil is the production of top-quality charcoal, made of Bamboo. In

order to provide the charcoal briquettes packed in paper-bags for the customer EmBraVerde is producing

new Bamboo seedlings on own land and producing charcoal by use of own machines and filling the paper-

sacks (bags) at the Fazenda. This way EmBraVerde is independent from third party suppliers and we are able

to react very flexible on the demands for delivering charcoal for our customers.

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3.1 Charcoal Production Process

The following illustration shows the process of work at EmBraVerde (Fazenda in Brazil) to provide the

Bamboo charcoal in bags for shipment.

Figure 13 Production Process of Charcoal

Producing

Seedlings

• .

GrowingBamboo

• .

HarvestingBamboo

Green &

Sustainable

ProducingChar-Coal

The nursery at Fazenda „BOCAINA“ in Brazil, state of Goias, is able to produce seedlings of Dendrocalamus (D.C.) ASPER and D.C. STRICTUS at capacities of more than 100.000 seedlings per year.

Typically, 300 seedlings are planted per ha. It takes six to eight years for the Bamboo to mature at heights of approx. 25 m. The “lifetime” of the Bamboo is more than fifty years.

Harvesting takes place every year by selective cutting of poles. The Bamboo continues growing, no “deforestation” and delivers approx. 40 t of biomass per hectare, every year.

Bamboo char-coal shows values for energy of more than 26.000 kJ/kg (> 6,200 kcal/kg) (> 7.2 kWh/kg) similar to char-coal made of high quality wood (beech, oak); close to energy of oil and gas.

While harvesting 40 tons of biomass per hectare every year the Bamboo takes more than 50 tons of CO2 per ha and year while producing 30% more oxygen than wood. The Green-House balance is POSITIVE.

ProducingBriquette

• .

Packaging,Transport

• .

Distribution

[UNHCR]

Consumer

[Refugees]

Bamboo-Char-Coal is pressed to briquettes to guarantee high standards in quality and for easy transportation and firing at the customer’s side.

Bamboo-Briquettes are packaged in 3, 5 or 10 kg paper – bags. Container-transport on land and sea.

Distribution of Bamboo Char-Coal-Bamboo are done by professional distributors.

Bamboo charcoal is mainly used for cooking, etc. It keeps the burning-heat three times longer than char-coal, made of wood. It shows nearly no smoke; it provides higher temperature than wood charcoal. It is sustainable, carbon-clean and cheap.

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3.2 Example: Transport to Europe

The following example shows the cost calculation by EmBraVerde for the transport of a single 40-foot

container from the EmBraVerde production site (Fazenda) to a container port in Europe.

Example: One 40-foot container, filled with 10 kg bags of Bamboo charcoal briquettes to be delivered to the

harbor (container port) of Rotterdam, Netherlands.

The 40-foot container can take approx. 2.600 bags packed on standardized pallets, filled with Bamboo

charcoal briquettes.

The following table shows estimated costs for transport by truck from production site to container port of

Santos (Sao Paulo, Brazil) and ship cargo to Rotterdam (container port) in the Netherlands.

Origin Destination Transport Duration Costs [USD] Remark

Brazil, Goias, Goiania

Brazil, SP, Santos

40-foot container on truck

1 to 2 days

(1.000 km)

1.500, -

Brazil, SP, Santos

Netherlands, Rotterdam

40-foot container on ship

16-20 days

(10.100 km)

2.200, - Incoterm 2010 CIF,

costs estimated Table 1 Example of Container Transport

Costs for transport calculate to USD 1.500, - + USD 2.200, - = USD 3.700, -

This adds USD 3.700, - / 2.600 bags = USD 1.42, - per bag.

In result, only USD 3.700, - are needed to send a complete container with 2.600 bags of 10 kg Bamboo

charcoal briquettes to Europe.

3.3 Best Charcoal

Charcoal briquettes made of Bamboo show much better physical and chemical values than charcoal made of

wood.

Low ignition energy compared with other long lasting coals;

Hardly any smoke;

No bad smelling;

Reaches high temperature in short time;

High energy content and longtime burning;

It burns almost residue free and leaves hardly no ash.

EmBraVerde is continuously checking the quality of the Bamboo charcoal and guarantees top quality for all

deliveries. In addition, the shape and the density of Bamboo briquettes are permanently optimized for the

kind of usage (stoves, etc.). The following illustrations show the charcoal, made of Bamboo.

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Figure 14 Source of Bamboo Charcoal

Source for Charcoal is Giant Bamboo Various sizes for packaging Shape of Charcoal is still Bamboo

Figure 15 Top Quality of Bamboo Charcoal

Charcoal packed in slides Charcoal packed in broken pieces

Figure 16 Packaging of Bamboo Charcoal

Before and after Pyrolysis Top-quality Charcoal

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Firing pieces of Bamboo Charcoal Firing slides of Bamboo Charcoal

Figure 17 Firing of Bamboo Charcoal

In addition, EmBraVerde produces various types of BRIQUETTES in different shapes and density, made of

Bamboo charcoal

Special shape for “stoves” Typical shape Most efficient

Energy > 30.000 kJ / kg Ash < 10% High Temperature, Long lasting burning, quasi no smoke, no smell Figure 18 Shape of Bamboo Charcoal Briquettes

The following illustration shows our favorite of Bamboo charcoal briquettes. Top physical values, no smoke,

no smell, constant quality, best shape for efficient burning, etc.

It will be delivered in small paper boxes of 40 x 20 x 20 (LxWxH) in [cm].

Preferred shipment in 40-foot container on pallets for easy loading and unloading. More than 2.600 boxes in

one single container.

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Packed in 10 kg boxes. Pure Bamboo, no add on. Perfect shape for burning.

Figure 19 The Favorite of Bamboo Charcoal Briquettes

The following diagram shows typical values for the heating temperature, when using Bamboo charcoal. A

high temperature of more than 300 °C will be available for at least four (4) hours.

The temperature of Bamboo Charcoal Briquettes is even higher. Tests are in preparation.

Figure 20 Temperature of firing Bamboo Charcoal

3.3 Packaging

The packaging will be done straight at the production site, at the Fazenda in Brazil.

EmBraVerde is offering the Bamboo Charcoal Briquettes in paper bags or boxes at 5, 10 or more kg:

without any specific printing (neutral);

based on customer’s data for printing; or

as the own brand of EmBraVerde.

550 550 550 540 530 510480 460 450

420390

360 350 340

0

100

200

300

400

500

600

15 30 45 60 75 90 105 120 135 150 165 180 195 210

Tem

per

atu

re o

f th

e G

low

Burning-Time in Minutes

Temperature of the Charcoal

Charcoal [1 kg] Temperature [°C] Charcoal [2 kg] Temperature [°C]

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The following illustration show the different types of packaging, as an example.

EmBraVerde Brand Customers Brand No Brand

Figure 21 Packaging in Paper Bags (boxes)

3.4 Compensating CO2 Emission

The emission of Carbon Dioxide (CO2) for the transport example above, calculates as follows:

The weight of one empty 40-foot container shows 4 tons. The load of 2.600 bags * 10 kg equals to 26 tons. In

total, a weight of 26 t + 4 t = 30 t have to be moved by truck and by sea cargo.

A big truck emits approx. 100 grams per ton of load and kilometer of distance; a container ship about 30

grams per ton of load and distance in kilometer.

1.000 km by truck * 100 grams of CO2 per ton of load and km, 30 t of load = 3.000 kg CO2e;

10.100 km by ship * 30 grams of CO2 per ton of load * 30 t of load = 9.090 kg CO2e.

In total 3.000 kg + 9.090 kg =12.090 kg of CO2e can be compensated by:

1 ha (= 10.000 square meters) of giant Bamboo captures approx. 50 tons of CO2 per year.

10.000 sqm * 12.090 kg / 50.000 kg =2.418 sqm.

2.418 square meters of Bamboo (approx. 1/3 of the size of one soccer field) need to be planted for the

compensation of 12.090 kg of CO2e in one single year. Alternatively, a smaller area of land can be planted

and will compensate the emitted carbon dioxide in more than one year.

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4 Bamboo Dendrocalamus ASPER, Facts & Figures

In Brazil, we are focused on the species Dendrocalamus (D.C.) ASPER and D.C. STRICTUS.

The following illustration shows the main characteristic of Bamboo D.C. ASPER.

Bamboo: Facts & Figures

Species: Family DENDROCALAMUS (D.C.), Species: ASPER

Original: ASIA, but already in use in Brazil and AFRICA.

Specification: Height: 30 meters, Diameter: 25 cm, Growth: Dense Clumping, Climate: Tropical & Sub-Tropical, takes 6 to 8 years for growing, Lifetime: more than 50 years

Biomass: More than 40 tons per hectare and year by selective harvesting. Energy: 1 kg of Bamboo - pellets approx. 5 kW (= 18 MJ); 1 kg of Bamboo – charcoal briquettes approx. 8 kW (= 30 MJ) Compare: 1 kg of FUEL delivers 10 kW.

Products: Bamboo – Poles are used by furniture industry, to produce flooring systems, etc. and for civil constructions (re-enforcement, etc.) More than 1.000 products made of Bamboo are available. Capacity: 1.500 poles per hectare per year, every year.

Environment: Excellent plant for the recovery of damaged land (mining, natural disasters, expanding deserts, etc.); One hectare of Bamboo Giganteus absorbs more than 60 tons of Carbon Dioxide (CO2) per year,

every year and the plant is producing 30% more oxygen than any other plant on earth.

Figure 22 Bamboo Facts & Figures

November 08, 2016 Harald Waecken